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Manufacturer can contract with supplier in Asia to purchase the part for $12.00, which includes transportation. Create a simple spreadsheet to answer the following (Create
Manufacturer can contract with supplier in Asia to purchase the part for $12.00, which includes transportation. Create a simple spreadsheet to answer the following (Create a Tab for each 1a, 1b, and 1c): a. If the anticipated production volume is 1,200 units, compute the total cost of manufacturing and the total cost of outsourcing. What is the best decision? b. Find the Break-even volume using a formula. c. Find the breakeven using Goal seek. Set as like the example below: 1 Outsourcing Decision Model 2 3 Data S Manufactured in-house $50,000 $125 Fixed cost Unit variable cost 6 7 8 9 Purchased from supplier 10 $175 Unit cost 11 12 13 Production volume 1000 14 Model 15 Total manufacturing cost Total purchased cost $175,000 $175,000 19 Cost difference (Manufacture - Purchase) 20 S0 Manufacture Best Decision 67 88 Manufacturer can contract with supplier in Asia to purchase the part for $12.00, which includes transportation. Create a simple spreadsheet to answer the following (Create a Tab for each 1a, 1b, and 1c): a. If the anticipated production volume is 1,200 units, compute the total cost of manufacturing and the total cost of outsourcing. What is the best decision? b. Find the Break-even volume using a formula. c. Find the breakeven using Goal seek. Set as like the example below: 1 Outsourcing Decision Model 2 3 Data S Manufactured in-house $50,000 $125 Fixed cost Unit variable cost 6 7 8 9 Purchased from supplier 10 $175 Unit cost 11 12 13 Production volume 1000 14 Model 15 Total manufacturing cost Total purchased cost $175,000 $175,000 19 Cost difference (Manufacture - Purchase) 20 S0 Manufacture Best Decision 67 88
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